BAODING, Hebei, China, March 23, 2011 /PRNewswire-Asia-FirstCall/ -- Orient Paper, Inc. (AMEX: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in northern China, today announced that its financial statements for the fiscal year ended December 31, 2008 (FY 2008) included in the Annual Report for the fiscal year 2008 and fiscal year 2009 are not considered to be audited due to lapsed licenses of its previous audit firm, Davis Accounting Group P.C. ("Davis Accounting"), at the time of auditing the Company's FY 2008 financial statements.
The Company had no knowledge that Davis Accounting's license in Utah lapsed until 2011. During the time when Davis Accounting was retained by the Company, Davis Accounting represented that it was in good standing.
The Company is in the process of engaging its current independent registered public accounting firm, BDO Limited, the Hong Kong member firm of the BDO International network ("BDO Limited"), to re-audit its fiscal year 2008 financial results. The re-audit does not impact the Company's financial statements for fiscal year 2009 and fiscal year 2010, both of which were audited by the Company's new registered independent public accounting firm, BDO Limited. The Company has informed the NYSE AMEX about the re-audit of its FY 2008 financial statement.
Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper commented, "We are not aware of any other information at this time which leads us to believe that our financial statements for 2008 are materially incorrect in any way. We have been in communication with the SEC and PCAOB to determine the best course of action. We are in the process of engaging our current auditor, BDO Limited, to perform a re-audit of the Company's 2008 financial statements in order to confirm the accuracy of those financial statements. We anticipate that the re-audit will be completed by the beginning of the third quarter of 2011, if not earlier."
About Orient Paper, Inc.
Orient Paper, Inc., through its wholly owned subsidiary, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd. ("Baoding Shengde"), and Hebei Baoding Orient Paper Milling Co., Ltd ("HBOP"). Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, and other paper and packaging-related products in China. The Company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009 located in Baoding, is engaged in the production and distribution of digital photo paper. As one of the largest paper producers in Hebei Province, China, HBOP is strategically located in Baoding, a city in close proximity to Beijing where the majority of publishing houses are based. Orient Paper is led by an experienced management team committed to diversifying the Company's product offering and delivering tailored services to its customers. For more information, please visit http://www.orientpaperinc.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, any projections of completion of the re-audit of the Company's FY 2008 financial statements, earnings, revenue, margins or other financial items; the actions and initiatives of current and potential competitors; the Company's ability to introduce new products; the Company's ability to implement the planned capacity expansion of corrugating medium paper; market acceptance of new products; general economic and business conditions; the ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
SOURCE Orient Paper, Inc.